Impact of belated deposit of employees’ contribution towards the EPF and ESI under Income Tax

Belated employees' contribution: deduction disallowed when not deposited by prescribed statutory due date; employer contribution treated differently.

Non-deposit of employees' contribution within the due date prescribed under the respective provident/insurance statute results in disallowance of the employer's deduction, whereas employer contributions are subject to a separate payment-based rule that defers deduction until actual payment. The statutory scheme preserves distinct treatment: employee contributions must be credited by the statutory due date to qualify as deduction, while employer contributions may be allowed on a payment basis when actually paid.